This blog post shows how to fix following error message when installing Virtual Machine on host that is running Windows 2012R2 + update.
Following error message appears after selecting Windows server version (for example w2012R2 Standard with gui”:
Windows cannot find the Microsoft Software License Terms. Make sure the installation sources are valid and restart the installation.
Reason for this error is VMs dynamic memory settings. You need to change minimum memory at least 576MB.